Gold Prices Rise 26.3% Since Early 2025 Amid Inflation

Gold was trading at $3,352 per ounce at 9:05 a.m. Eastern Time today, marking the same price as yesterday at the same hour. This price point is $883 higher than it was a year ago, indicating a significant increase in value over the past year. One month ago, the price of gold was $3,440 per ounce, reflecting a 2.63% decrease from the current price. Historically, gold has been an asset that appreciates over time, making it a wise choice for investors seeking an asset less affected by inflation.

Gold is often seen as a reliable, risk-averse asset during economic uncertainty. It serves as a store of value rather than a typical investment like stocks or bonds. However, in a strong economy, stocks can deliver better returns both in the short and long term. From 1971 to 2024, traditional stocks averaged 10.7% annual returns, while gold averaged 7.9%.

The spot price of gold is the current rate for buying or selling gold immediately in over-the-counter trades. This helps investors track gold demand and market trends. A higher spot price means stronger demand. Unlike futures, the spot price is for immediate settlement. Many factors can cause the spot price to fluctuate, and investors should be prepared for this volatility.

Investors have multiple ways to invest in gold, including gold bars and rounds, gold coins, gold jewelry, gold futures contracts, and gold funds. Gold bars and rounds, also known as bullion, are sold by weight with purity and manufacturer details marked. Gold coins, such as the American Gold Eagle, are often priced higher than bars due to their rarity. Gold jewelry is priced above gold content for design and craftsmanship. Gold futures contracts are agreements to buy gold at a future date, allowing speculation without handling the metal. Gold funds, including mutual funds or ETFs, are invested in gold with values tied to the underlying assets.

Deciding if now is the right time to invest in gold is subjective. However, gold can help diversify your portfolio and reduce market risk. Gold remains a stable asset amid today’s market volatility. Prices have reached record highs, up more than 25% since early 2025, driven by inflation and uncertainty. Many experts recommend adding gold for diversification.

Silver, platinum, and palladium are also common portfolio additions. Gold is typically less volatile than silver, which can see major price swings within a day. Silver’s use in industry makes it more responsive to economic trends. Platinum and palladium behave similarly to silver. These rare metals can diversify a portfolio but are usually more volatile than gold.

The U.S. economy has been unsettled for years, with persistent inflation making an impact. Gold can serve as an inflation hedge in your portfolio. With multiple ways to buy, gold is accessible to most investors. Whether through a gold IRA or a more active investment approach, gold can help achieve both short- and long-term goals.